Kingdom Bank in doldrums

Industry sources told BusinessWeek that the offshore bank, which is 100 percent owned by Zimbabwean banker Nigel Chanakira, is failing to pay back some of the depositor funds as most of its assets were tied-up in illiquid assets and advances to customers, whose recoverability is not guaranteed.

The bank’s 20 workers have also not received regular salaries since November last year, as the bank is surviving on a hand-to-mouth basis. Since it is an offshore bank, KBAL depositors and debtors are all foreign based, predominantly in Zimbabwe.